ILLMAS Posted February 17, 2014 Report Share Posted February 17, 2014 I just received a call from one of my client letting me know he wants to do his tax return different because he put his properties in a living trust. I don't prepare trust returns, so I wanted to see if someone can enlighten me on this matter. Thanks MAS Quote Link to comment Share on other sites More sharing options...
jklcpa Posted February 17, 2014 Report Share Posted February 17, 2014 If this is a revocable trust with either the taxpayer or spouse as the trustee, then he has retained control over the assets and will continue to report the income from the trust assets on his personal return and no gift tax return for the transfer of assets into the trust is required. It's different if the trust is irrevocable or if someone other than the taxpayer or spouse is the trustee. Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted February 17, 2014 Report Share Posted February 17, 2014 Are you going to prepare the trust return? If so, ask for the trust instrument and read it before you begin completing the trust tax return. In most cases the trust instrument will give you the taxation of the trust. Quote Link to comment Share on other sites More sharing options...
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